Primark owner Associated British Foods yesterday predicted a first half profits jump and said growth should continue throughout the year.

AB Foods said its results for the first six months of its financial year to February 27 would show strong sales and profits growth across its business with brands such as Silver Spoon and Twinings Ovaltine leading the way.

Primark also produced strong trading, with Christmas sales beating the firm's expectations. The discount clothing brand is set for further UK expansion in the coming months, with stores planned for Chester, Bury and Blackburn.

Further outlets will be opened in the next financial year after the group bought 10 Bhs properties in England. Primark, which has 196 stores and 6.1m sq ft of selling space, has also been expanding in its other European centres and the firm plans to open three new stores in Spain in the second half.

AB Foods said its grocery division had benefited from good results across its UK brands and a restructuring during last year.

Rising demand for home bakery ingredients helped Silver Spoon, which also saw better profits after a rationalisation of its packaging plant.